If you are looking to implement a PIM system, you will likely find two different PIM solutions – On-premise and cloud deployment. While both can help businesses boost efficiency in managing product information, streamlining workflows and improving the quality of product data, there are some differences you need to be aware of.
In this post, we will breakdown some key differences between the two, so you can choose the best option based on your end business goals.
What is Cloud PIM?
Cloud-based PIM is a system that is hosted in the cloud, which can be accessed through the internet or an application. Cloud infrastructure eliminates the need of downloading and installing a PIM solution to any device.
It also eliminates the need of having your own storage space, as these cloud systems store client data through Google or Amazon Web Services (AWS).
Cloud-based PIM platforms are usually subscription-based that come ready to use as soon as it is implemented. It is usually offered as a SaaS, meaning your PIM provider will provide a teamworking alongside you.
What is On-Premise PIM?
As the name suggests, on-premise PIM platform is located physically on-site. You purchase it once and then you deploy it on your own servers. You have full control of the PIM implementation, integration, upgrades, maintenance and customizations. In order to ensure everything runs smoothly, you will also need a dedicated IT team.
On-premise PIM systems also come in two types – open-source and proprietary platform. The open-source system enables you to access and make changes in the source code as you feel suitable according to your business requirements. While in proprietary platform, your PIM vendor will be responsible for adding new features and upgrades.
There is clearly a huge discussion going around both the platforms, as some businesses prefer on-premise over cloud application, while others vice versa. In this post, we will compare both platforms based on the six parameters that will help you choose the best PIM solution for your business.
Six Parameter to Choose the Best PIM Solutions
#1 Speed
Speed is a crucial factor for any business to become successful. If you are able to meet your customer demands as quickly as possible, you have more chances to win customers. A PIM solution that is easy to implement can help you get in the market faster and sell the right products at the right time.
A cloud PIM minimizes all the deployment related activities and ensures faster time to market. Since the PIM system is already installed and ready to use, you can start working on your product data immediately, automate catalog creation and build multiple marketing campaigns.
Furthermore, with a cloud PIM system you don’t need to worry about application hosting, system maintenance and security upgrades as everything is managed by the PIM vendor.
On the other hand, working with on-premise PIM application is a time-consuming and labor-intensive process in order to be implemented successfully. It requires your team to manage all the responsibilities of installation, hosting, configuration and maintenance.
Although on-premise solution offers a high-level of customization and better control over data, it requires significant time investment for resource planning, system maintenance and equipment setup.
#2 Level of Control
When it comes to the level of control you have, there will be two important elements to consider – the control you have over the data within the PIM system and the control over the platform itself.
If you are looking to have a total control over how you wish to access, store and manage product data, then a cloud-based PIM may not be an ideal solution for you. Cloud PIM takes care of installation and configuration to a great extent, but the control lies much with the provider.
If a provider rolls out a new version or a system upgrade, it will be applicable to all the clients without their consent. There will be certain issues that will remain beyond your control.
With on-premise implementation, you have total control over your PIM system. As the application is hosted on-premise server, you have complete command over your product data and system design. You can control system versions and customize the application to match your business needs.
Since the PIM system is located physically on-site, you can securely store information, quickly retrieve data, control version issues and thereby have better control over your product data.
#3 Cost
The cost of the application is another key consideration that should be taken into account. A PIM that is implemented on-site will certainly have different cost implications than a PIM that is cloud-based.
Cloud-based PIM has much lower cost compared to an on-premise PIM system. That is because you won’t have to purchase any additional hardware or software as the PIM system will readily integrate with your existing system.
Additionally, the cost of cloud PIM includes installation, configuration, upgrades, new features and maintenance. This is ideal for small and medium businesses that operate on a limited budget and don’t need high-end, fully-customizable system to manage their product data.
The cost to implement on-premise PIM system is quite higher than cloud PIM systems. It requires significant investment, including the cost of software licensing, additional hardware, installation, configuration, maintenance, new plug-ins and continuous upgrades. But, this gives you better control over all aspects of your PIM system.
#4 Security
Data security and privacy are one of the biggest concerns for any business owner when using a new software tool. Although both on-premise and cloud PIM are susceptible to attack, you must ensure that your PIM offers complete security of your product information at any cost.
When using cloud-based PIM, the security of your data lies in the hands of the PIM vendors. Most cloud PIM providers offer robust security measures with universally accepted security standards for their platform security, network, operating systems and infrastructure. Since everything works on the cloud, you don’t have much control over security in cloud PIM.
Therefore, many businesses choose on-premise PIM solutions over cloud PIM for higher security and reliability. Enterprises that deal with extremely sensitive product information invest in on-premise PIM. As the data is stored on-site and reside nowhere else, you have more scope of maintaining availability, confidentiality and integrity of the data.
#5 Scalability
Both on-premise and cloud PIM show some notable differences from the scalability perspective. As cloud PIM vendors are investing in advanced technologies, they offer higher scalability to enterprises for ensuring success in this highly competitive market.
Cloud PIM enables businesses to quickly respond to changes in demand due to market fluctuations. It eliminates the need of hiring additional resources or installing new server capacity, and offers a simplified way to meet increasing business requirements and improve time to market, which is a crucial success factor in today’s evolving business vertical.
On the other hand, on-premise PIM applications have always been challenged by of their limited scalability potential because of the use of physical servers. It is not easy to add new systems when your business faces increased demands and move back to original configuration when the demand is reduced.
Hence, no matter how strong your on-premise PIM systems are, if they are unable to scale according to changing customer demands, you are losing potential opportunities.
#6 Accessibility
How quickly and easily you can access data is not something to be underestimated. Accessibility plays an important role in determining your digital business success.
A software application that resides in the cloud is accessible from anywhere and anytime through a secured internet connection. This enables business employees to access the data and gives freedom to work remotely or on-the-go.
This also facilitates around the clock operations, which is crucial if you are looking to expand globally. However, if you face connectivity issues, you won’t be able to access the data, which can turn into an extremely frustrating experience.
With on-premise PIM system, the data resides within your own servers, giving you direct access to the product information without requiring you to connect to the internet. However, on-premise PIM do have some restriction on the remote access, which makes impossible to access the data at any time and from anywhere.
Meaning, you can access the data stored in these systems only when the systems are functioning. Furthermore, creating a remote connection to give your employees access to the data also adds another layer of complexity in the implementation process.
Meaning, you can access the data stored in these systems only when the systems are functioning. Furthermore, creating a remote connection to give your employees access to the data also adds another layer of complexity in the implementation process.
Cloud Vs. On-premise PIM – Which Is Right for You?
At the end of the day, choosing the right PIM solution depends on your data management strategy and your end business objectives.
- What product information management goals do you wish to achieve?
- How quickly do you want to achieve?
- What storage size do you need?
- Do you have a larger or a smaller catalog?
- What are your current systems and what IT resources do you have?
- How much are you willing to invest?
- What is your future business vision?
The answers to these questions will largely help you choose the right PIM for you.
Whether you choose on-premise or cloud PIM, make sure you test the PIM’s capabilities to ensure it fits well within your existing systems and deliver the level of performance you desire from the potential PIM.
